* C$ at C$0.9976 vs US$, or $1.0024
* Weak German data offset by ECB stimulus hopes
* Bond prices higher across the curve
By Jon Cook
TORONTO, Aug 8 (Reuters) - (Refiles to correct typographic
error in third paragraph)
The Canadian dollar was little changed against its U.S.
counterpart on Wednesday, as weak German data was offset by
expectations the European Central Bank will ultimately step in
to boost the euro zone's flagging economy.
German imports fell sharply for the second time in three
months in June and exports also dropped, data showed on
Wednesday, adding to signs the single currency bloc's crisis is
beginning to hurt Europe's largest economy.
But expectations the ECB will step in and buy bonds to ease
pressure on the debt-riddled euro zone economies of Spain and
Italy diminished the impact of the data on the Canadian dollar.
"Markets are somewhat mixed to start the morning," said
Blake Jespersen, managing director, foreign exchange sales at
BMO Capital Markets. "It's a very quiet summer market."
On Tuesday, Canada's dollar soared to C$0.9962
against the greenback, or $1.0038, its loftiest level since May
11.
At 8:10 a.m. EDT (1210 GMT), Canada's dollar was at C$0.9976
versus the U.S. currency, or $1.0024, virtually unchanged from
Tuesday's close at C$0.9975 against the greenback, or $1.0025.
The Canadian dollar was up against other growth-related
currencies such as the euro and the Australian dollar
.
However, it slipped against sterling after Bank of
England Governor Mervyn King appeared cautious about future
interest rate cuts, surprising some investors. Earlier, the
central bank slashed inflation and growth forecasts in its
Quarterly Inflation Report as the euro zone crisis continues to
take its toll.
Jespersen said the currency would likely stay within a tight
range between C$0.9950, or $1.0050, and parity with the
greenback.
"Parity really becomes the resistance now on the Canadian
dollar," he added. "We failed to break above it overnight."
Canadian bond prices were higher across the board. The
two-year bond rose 3 Canadian cents to yield 1.156
percent, and the benchmark 10-year bond rose 9
Canadian cents to yield 1.831 percent.